Bell companies, not CLECs, are the real beneficiaries of govt. re...
Bell companies, not CLECs, are the real beneficiaries of govt. regulations, according to study by Lee Selwyn, pres. of research firm Economics & Technology Inc. (ETI) and commissioned by AT&T. Study said it was ironic that Bells were complaining…
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about being held back by govt. regulation since they had benefited greatly from it. Govt. regulations have contributed nearly $29 billion annually to 4 Bell companies, “a substantial portion of total RBOC [Regional Bell Operating Company] revenues,” Selwyn said. Study cited “top 10 corporate welfare” regulations: (1) Switched access rates “in excess of economic costs,” accounting for $9.9 billion annually. (2) “Free nationwide cellular licenses,” $4.7 billion annually. (3) Dedicated access rates “in excess of economic costs,” $3.9 billion. (4) “Monopoly rents” derived from Yellow Pages directory business, $2.8 billion. (5) Ability to terminate ISP-bound calls “at below-cost rates,” $1.8 billion. (6) Ability to offer interLATA vertical features “without compensating IXCs,” $1.7 billion. (7) “Competitor-financed universal service subsidies,” $1.6 billion. (8) “Restrictions on competition for small business customers,” $1.2 billion. (9) Ability to “preferentially market own long distance services,” $1.1 billion. (10) Unregulated provision of billing & collection services, $200 million. Charles Black, co-chmn. of CLEC-based Voices for Choices coalition, said study “unveils a supreme irony about the RBOCs’ massive lobbying campaign to have Congress and the FCC change the rules on high-speed Internet access.” He said that “though the Bells talk about parity,” in reality they're taking advantage of their own subsidies -- www.econtech.com/corporatewelfare.pdf